Part I - FINANCIAL INFORMATION [Item 1. Condensed Consolidated Financial Statements](index=2&type=section&id=Item%201.%20Condensed%20Consolidated%20Financial%20Statements) The company's unaudited statements show a net loss of $3.2 million versus a prior-year net income of $10.1 million [Condensed Consolidated Balance Sheets](index=3&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Total assets and liabilities both increased slightly, driven by changes in current assets and credit line borrowings Balance Sheet Summary (in thousands) | Account | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | | **Total Current Assets** | $37,555 | $31,616 | | **Total Assets** | $412,990 | $409,255 | | **Total Current Liabilities** | $10,225 | $16,525 | | **Total Liabilities** | $167,386 | $160,390 | | **Total Stockholders' Equity** | $245,604 | $248,865 | - Total assets slightly increased to **$413.0 million** as of December 31, 2022, from $409.3 million as of September 30, 2022, primarily due to an increase in current assets like accounts receivable and inventories[11](index=11&type=chunk) - Total liabilities increased to **$167.4 million**, mainly driven by a significant increase in borrowings on lines of credit from $4.9 million to $19.0 million[11](index=11&type=chunk) [Condensed Consolidated Statements of Operations](index=4&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) The company experienced a significant revenue decline and shifted from a net income to a net loss year-over-year Statement of Operations Summary (in thousands, except per share data) | Metric | Q1 2023 (ended Dec 31, 2022) | Q1 2022 (ended Dec 31, 2021) | | :--- | :--- | :--- | | **Total Operating Revenues** | $10,588 | $15,337 | | **Gross (Loss) Profit** | $(3,801) | $1,811 | | **Loss from Operations** | $(6,310) | $(773) | | **Net (Loss) Income** | $(3,186) | $10,080 | | **Net (Loss) Income Attributable to Alico** | $(3,150) | $10,131 | | **Diluted EPS** | $(0.41) | $1.34 | | **Cash Dividends per Share** | $0.05 | $0.50 | - Total operating revenues decreased by **31.0% YoY**, from $15.3 million to $10.6 million, primarily due to lower revenue from the Alico Citrus segment[12](index=12&type=chunk) - The company reported a **net loss of $3.2 million**, a significant shift from a net income of $10.1 million in the prior-year quarter, driven by lower revenues and a smaller gain on asset sales[12](index=12&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Operating cash usage remained stable, while investing activities used cash and financing activities provided cash Cash Flow Summary (in thousands) | Activity | Q1 2023 (ended Dec 31, 2022) | Q1 2022 (ended Dec 31, 2021) | | :--- | :--- | :--- | | **Net Cash Used in Operating Activities** | $(9,665) | $(9,608) | | **Net Cash (Used in) Provided by Investing Activities** | $(496) | $4,079 | | **Net Cash Provided by Financing Activities** | $9,565 | $4,712 | | **Net Decrease in Cash** | $(596) | $(817) | | **Cash at End of Period** | $269 | $69 | - Net cash used in operating activities remained stable at approximately **$(9.7) million**, reflecting the seasonal nature of the business where costs are incurred before harvest revenues are fully realized[18](index=18&type=chunk) - Investing activities used **$0.5 million in cash**, a sharp contrast to providing $4.1 million in the prior year, mainly due to lower proceeds from the sale of real estate[18](index=18&type=chunk) - Financing activities provided **$9.6 million in cash**, primarily from increased net borrowings on revolving lines of credit to fund operations[18](index=18&type=chunk) [Notes to Condensed Consolidated Financial Statements](index=7&type=section&id=Notes%20to%20Condensed%20Consolidated%20Financial%20Statements) Notes detail business segments, debt compliance, asset sales, and purchase commitments - The company operates two primary business segments: **Alico Citrus** (cultivation and management of citrus groves) and **Land Management and Other Operations** (leasing, conservation, etc)[19](index=19&type=chunk)[24](index=24&type=chunk) - In Q1 2023, the company sold approximately **609 acres for $3.3 million**, resulting in a gain of $3.2 million[48](index=48&type=chunk) - As of December 31, 2022, the company had total outstanding debt and lines of credit of **$125.0 million** and was in compliance with all financial covenants[56](index=56&type=chunk)[67](index=67&type=chunk) - The company has outstanding purchase commitments of approximately **$5.4 million** for citrus trees as of December 31, 2022[109](index=109&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=24&type=section&id=Item%202.%20Management's%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the revenue decline and net loss, attributing them to Hurricane Ian and a terminated contract [Recent Developments](index=26&type=section&id=Recent%20Developments) Hurricane Ian significantly impacted groves, and the company is seeking federal relief while managing credit lines - **Hurricane Ian**, which made landfall on September 28, 2022, impacted a majority of the Company's groves, affecting fruit production[123](index=123&type=chunk) - The company is seeking **federal relief funds** made available through the Consolidated Appropriations Act to mitigate the financial impact of Hurricane Ian[126](index=126&type=chunk)[127](index=127&type=chunk) - The working capital line of credit was **extended to November 1, 2025**, and the interest rate benchmark was converted from LIBOR to SOFR[124](index=124&type=chunk) - The company received the final portion of Hurricane Irma federal relief funds, amounting to **$1.3 million** in Q1 2023, which is recorded as a reduction to operating expenses[128](index=128&type=chunk) [Condensed Consolidated Results of Operations](index=27&type=section&id=Condensed%20Consolidated%20Results%20of%20Operations) A 31% revenue drop and a 73% decrease in other income led to a significant net loss compared to the prior year Quarterly Results of Operations (in thousands) | Metric | Q1 2023 (ended Dec 31, 2022) | Q1 2022 (ended Dec 31, 2021) | Change (%) | | :--- | :--- | :--- | :--- | | **Total Operating Revenues** | $10,588 | $15,337 | (31.0)% | | **Total Gross (Loss) Profit** | $(3,801) | $1,811 | NM | | **Loss from Operations** | $(6,310) | $(773) | NM | | **Total Other Income, net** | $2,041 | $7,553 | (73.0)% | | **Net (Loss) Income** | $(3,186) | $10,080 | (131.6)% | - The significant decrease in revenue was primarily driven by a **30.4% decline** in the Alico Citrus segment[129](index=129&type=chunk) - Other income decreased by **73.0%** due to smaller gains on the sale of real estate in the current quarter ($3.2 million) compared to the prior-year quarter ($8.4 million)[149](index=149&type=chunk) [Segment Performance](index=28&type=section&id=Segment%20Performance) The Alico Citrus segment suffered from a terminated contract and hurricane impact, while Land Management revenue also fell - Alico Citrus revenue decreased primarily due to a **$3.2 million (94.5%) decline** in Grove Management Services after a major third-party client exited the citrus business[131](index=131&type=chunk)[134](index=134&type=chunk) - The Early and Mid-Season harvest was **negatively impacted by Hurricane Ian**, leading to accelerated harvesting, a 4.5% decrease in pound solids per box, and a 2.7% decrease in processed boxes[135](index=135&type=chunk) - Alico Citrus operating expenses increased by **6.8%** due to significant cost increases in fertilizer, herbicide, fuel, and additional costs for hurricane-related cleanup and repairs[131](index=131&type=chunk)[139](index=139&type=chunk) - Land Management and Other Operations revenue decreased by **45.7%**, mainly due to lower grazing and hunting lease revenue resulting from the sale of portions of the Alico Ranch[144](index=144&type=chunk)[145](index=145&type=chunk) [Liquidity and Capital Resources](index=32&type=section&id=Liquidity%20and%20Capital%20Resources) Working capital increased significantly, and management believes liquidity is sufficient for the next twelve months Liquidity Summary (in thousands) | Metric | Dec 31, 2022 | Sep 30, 2022 | | :--- | :--- | :--- | | **Cash and cash equivalents** | $269 | $865 | | **Working capital** | $27,330 | $15,091 | | **Principal amount of term loans and lines of credit** | $124,982 | $111,624 | - **Working capital increased significantly to $27.3 million** from $15.1 million, primarily due to a decrease in current liabilities, specifically accrued dividends and ad valorem taxes[73](index=73&type=chunk)[153](index=153&type=chunk) - The company had approximately **$50.7 million available** under its $70 million working capital line of credit and $25 million available under its revolving line of credit as of December 31, 2022[157](index=157&type=chunk) - Management believes that cash-on-hand, cash from operations, asset sales, and available credit lines will provide **sufficient liquidity** for at least the next twelve months[156](index=156&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=35&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company reports no material changes in its market risk disclosures from its last annual report - There have been **no material changes** in the company's quantitative and qualitative disclosures about market risk during the reporting period[167](index=167&type=chunk) [Item 4. Controls and Procedures](index=35&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls were ineffective due to a material weakness in financial reporting - Management concluded that disclosure controls and procedures were **not effective** as of the end of the period covered by the report[168](index=168&type=chunk) - The ineffectiveness is due to a continuing **material weakness** related to controls around the income tax provision and the evaluation of financial statement misstatements[170](index=170&type=chunk)[171](index=171&type=chunk) - A **remediation plan** has been designed and is being implemented to address the control deficiencies, including instituting a more rigorous reconciliation process for the tax provision and documenting the evaluation of any misstatements[171](index=171&type=chunk)[172](index=172&type=chunk) Part II - OTHER INFORMATION [Item 1. Legal Proceedings](index=37&type=section&id=Item%201.%20Legal%20Proceedings) The company is not party to any legal proceedings expected to have a material adverse effect - There are **no current legal proceedings** expected to have a material adverse effect on the Company[176](index=176&type=chunk) [Item 1A. Risk Factors](index=37&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the company's latest Annual Report have occurred - **No material changes** have occurred in the risk factors from the company's most recent Form 10-K filing[177](index=177&type=chunk) [Item 2. Unregistered Sales of Equity Securities and Use of Proceeds](index=37&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not engage in any unregistered equity sales or share repurchases during the quarter - There were **no sales of unregistered equity securities** during the reporting period[178](index=178&type=chunk) - The company **did not purchase any of its own equity securities** during the reporting period[178](index=178&type=chunk)

Alico, Inc. (NASDAQ:ALCO) Q4 2022 Earnings Conference Call December 13, 2022 4:30 PM ET Company Participants John Kiernan - President and Chief Executive Officer Perry Del Vecchio - Chief Financial Officer Conference Call Participants Gerard Sweeney - ROTH Capital Partners, LLC Operator Welcome to Alico's Fourth Quarter and Full-Year 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, today's conference is being recorded. Earlier today, the Company issued ...

Alico, Inc. (NASDAQ:ALCO) Q3 2022 Earnings Conference Call August 3, 2022 4:30 PM ET Company Participants John Kiernan – President and Chief Executive Officer Conference Call Participants Gerry Sweeney – ROTH Capital Operator Welcome to Alico's Third Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, today's conference is being recorded. Earlier today, the company issued a press release announcing its results for the third quarter ended June 30, 2 ...

Alico, Inc. (NASDAQ:ALCO) Q2 2022 Results Conference Call May 9, 2022 4:30 PM ET Company Participants John Kiernan - President and Chief Executive Officer Rich Rallo - Chief Financial Officer Conference Call Participants Gerry Sweeney - ROTH Capital Operator Welcome to Alico's Second Quarter 2022 Earnings Conference Call. At this time, all participants are in a listen-only mode. As a reminder, this conference is being recorded. Earlier today, the Company issued a press release, announced its results for the ...

Alico, Inc. (NASDAQ:ALCO) Q1 2022 Earnings Conference Call February 3, 2022 8:30 AM ET Company Participants John Kiernan - President and Chief Executive Officer Richard Rallo - Chief Financial Officer Conference Call Participants Gerry Sweeney - ROTH Capital Operator Welcome to Alico’s First Quarter 2022 Earnings Conference Call. [Operator Instructions] As a reminder, today’s conference is being recorded. Earlier today, the company issued a press release announcing its results for the first quarter ended De ...

Alico, Inc. (NASDAQ:ALCO) Q4 2021 Earnings Conference Call December 7, 2021 8:30 AM ET Company Participants John Kiernan - President and Chief Executive Officer Richard Rallo - Chief Financial Officer Conference Call Participants Gerry Sweeney - ROTH Capital Marco Rodriguez - Stonegate Capital Operator Welcome to Alico’s Fourth Quarter and Full Year 2021 Earnings Conference Call. [Operator Instructions] As a reminder, today’s conference is being recorded. Earlier today, the company issued a press release an ...